Bioventus (BVS) 43rd Annual J.P. Morgan Healthcare Conference 2025 summary

Strategic overview and portfolio focus

• Streamlined portfolio by divesting Advanced Rehabilitation business in late 2024 to sharpen focus on growth and profitability.

• Maintains three main businesses: Pain Treatments, Surgical Solutions, and Restorative Therapies, with over $555 million in LTM global proforma revenue as of September 2024 post-divestiture.

• Targets a $6.4 billion market opportunity, with leadership or growth positions in each segment.

• Assembled a diverse portfolio with both short- and long-term growth drivers, categorized as high-growth drivers, market leaders, and emerging growth engines.

• Not actively seeking M&A, but open to opportunities that fit existing channels; current focus is on organic growth and debt reduction.

Financial performance and outlook

• Achieved revenue growth of over 13% at the midpoint of 2024 guidance, up from 3.5% the prior year.

• Peer-leading gross margin in the mid-70s, with EBITDA projected to exceed $100 million in 2024, representing about 20% growth.

• Paid down nearly $50 million in debt in Q4 2024, with net leverage expected to drop below 3 before end of 2025.

• Free cash flow turned positive in 2024, expected to double in 2025, with cash flow yield projected to exceed 60%.

• Plans to expand EBITDA margin by 100 basis points annually, with EPS growth expected to outpace EBITDA.

Growth drivers and operational execution

• High-growth drivers include ultrasonics and bone graft substitutes, both delivering strong double-digit growth and targeted for further market development and international expansion.

• Market leaders such as hyaluronic acid (HA) for knee osteoarthritis and Exogen bone stimulation have rebounded, with HA growing at 3x the market and Exogen returning to low- to mid-single-digit growth.

• Emerging growth engine in peripheral nerve stimulation (PNS) with Talisman and StimTrial technologies awaiting FDA approval, expected to launch in the second half of 2024 and become a long-term growth driver.

• Operational improvements include clear strategic focus, personnel upgrades, enhanced accountability, and targeted investments in underperforming businesses.

• Commercial execution and leadership experience have raised organizational performance, with a disciplined approach to margin expansion and reinvestment in growth assets.